Do you need quick access to cash in your business?
The situation isn’t always perfect when it comes to business deals. Sometimes you need to act quickly before an opportunity passes you by. RealFi can help.
You don’t have time to fill out a full-length loan application and wait for approval from a bank.
If this sounds like you, bridge loans might be a viable solution. Read on to learn more about the bridge loan process, and how you as a business owner can get access to a short-term loan that closes quickly.
Defining Bridge Loans
Bridge loans are a short-term financing option businesses can lean on when they need them. The loan period can be
anywhere from two weeks to three years.
Bridge financing helps business owners by giving them access to cash that meets an immediate need in their business. They may need cash to satisfy previous obligations, meet payroll for employees, or as a “stop-gap” measure until more traditional, long-term financing is put in place.
How Bridge Loans Work
Bridge loans are readily available for a wide variety of needs. However, this quick access to cash comes at a price.
Bridge financing is offered at higher interest rates than other forms of financing like traditional loans or home equity lines of credit (HELOCs).
These loans are a useful tool, but business owners/homeowners should use them with care. If a bridge loan is used irresponsibly, an individual may find themselves making two loan payments (their bridge loan plus an original mortgage) that they will struggle to afford.
It’s important to run your numbers, do your research, and even talk to an expert before pursuing additional financing in your personal or business life.
Bridge Loans For Business
In business, bridge loans come in handy while waiting for traditional financing to be put in place. They help to cover immediate expenses like utilities, payroll, and office rent.
Traditional financing applications in the business world may require complex paperwork like business projections, inventory and sales forecasts, etc.
Because of this, it may take a long time for the typical business loan to close. As a result, business owners often lean on bridge loans to help keep themselves operational during times when traditional financing is not in place.
That’s what makes bridge loans a great tool when used properly. Many businesses you see today may not exist if they didn’t have access to bridge financing to get them through their tough “start-up” phase.
Work With A Pro
It’s important to talk to someone that knows their stuff when applying for bridge financing, or any other type of institutional financing.
Realfi has experts who help hundreds of people apply for bridge loans every day. Leverage their experience, and let them help find you the financing solution that works best for you.
For more information, visit Realfi’s website or you can contact them directly. Their friendly and knowledgeable customer service team is a phone call away. They’re ready to help you with your financing needs, and allow you to be at your best.
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